Federico Trucco: Yes, I think for sure, obviously, Moolec is a little bit of a category creator in this molecular farming approach to functionalize soy ingredients. And to be able to do that, I think the ESG nature of the generation HB4 program came very handy to them, because it in a way helps them address the upstream part of their business. And eventually in the future, combine their technologies around functionalizing beans with our productivity solutions like HB4 and also the biological offering that comes with it in terms of seed treatments and so on. So I think there’s an opportunity to continue to do this type of stuff. And one thing that I believe is important on the Moolec front is that when we partner with farmers to originate the beans that will go into the Moolec agreement, the way we pay for those beans is in part with the equity ownership that we currently hold of Moolec.
Now, remember that Bioceres owns almost 2 million shares of Moolec that we got in exchange for assets that we sold to them at the time of the verdict acquisition, the GLA assets that are in the food ingredient side. So the way we’re going to pay in part the — for those 20,000 tons is by using that ownership stake. So this is also a way to create this additional business, if you will, with an incremental value for the data that we gather and the traceability that we put in place, but also from a working capital viewpoint, not affecting our cash position, but rather sort of in a way divesting our equity interest in Moolec and having that sort of be done jointly with farmers that are participating in this program.
Bobby Burleson: Great. Thank you.
Operator: Thank you, Mr. Burleson. Our next question is from Kemp Dolliver with Brookline Capital Markets. You may proceed.
Kemp Dolliver: Great. Thank you. First question, on slide 14, you have some graphics in the upper right-hand corner comparing the HB4 varieties versus top commercial materials. And I’m just trying to understand whether I’m interpreting the data correctly, because just looking at the height of the bars, 7.3 clearly outperforms everything else, but it’s not clear to me if that is the variety that you will be advancing. So can we start with that?
Federico Trucco: Yes. So first, Kemp, thanks for joining the call. 7.3 and 7.4 are two of the varieties we’re scaling up. Remember, the data we’re seeing here is not under drought conditions. No, this is the average of four sites where we compare these two materials with the top performers, commercially speaking, in each of these locations. And you’re averaging the top performers on one end, and then, so Check I and Check II are top performers, and comparing that to the two varieties that we’re scaling, but this is not under drought conditions. So the reason why we think these are great varieties is because in the past, we were able to achieve 10% to 20% improvement with HB4 under drought, but under normal conditions or high-performing conditions, we were still some distance away from the top commercial materials.
That has been something that we faced significantly in Argentina, almost delayed us in the past, as we were trying to sort of move forward with HB4 soy. Well, that’s not the case in Brazil. So we have materials that are equal, if not better, than these top commercial varieties and can deliver incremental yield under drought, which is not what’s being shown here. This is just sort of under normal or not dry-affected conditions.
Kemp Dolliver: Okay, so to summarize, essentially, the sales pitch is that you have the varieties that can match or, in the case of 7.3, modestly outperform existing commercial varieties under any conditions, and then when you get a drought, they will outperform noticeably?
Federico Trucco: Yes, yes, and again, 400 kilos of soy, even if that is modest, is significant enough to sort of give you a good return on investment in terms of the added value of HB4 seeds, no.
